\n

\n Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts:\n <\/p>\n

\n Contract AContract BContract price$125,000\u00a0$80,000\u00a0Cost of related goods\u00a070,000\u00a0\u00a055,000\u00a0Gross profit (loss)$55,000\u00a0$25,000\n <\/p>\n

\n Hjalmarsson, the customer, may cancel\u00a0both\u00a0contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.\n <\/p>\n

\n Required:\n <\/p>\n

\n
1. \n Should the two contracts be combined for purposes of applying the five-step revenue recognition model?\n <\/li>\n
2. \n What amount of revenue should Panarin associate with each of the contracts?\n <\/li>\n
3. \n When should revenue be recognized on each of the contracts?\n <\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

   Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts: Contract AContract BContract price$125,000\u00a0$80,000\u00a0Cost of related goods\u00a070,000\u00a0\u00a055,000\u00a0Gross profit (loss)$55,000\u00a0$25,000 Hjalmarsson, the customer, may cancel\u00a0both\u00a0contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/252432"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=252432"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/252432\/revisions"}],"predecessor-version":[{"id":255300,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/252432\/revisions\/255300"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=252432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=252432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=252432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}